Fengro Announces Private Placement of up to $1 .61M
Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6
Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
FENGRO ANNOUNCES PRIVATE PLACEMENT OF UP TO $1 .61M
July 25 2018 - VANCOUVER, BRITISH COLUMBIA: FENGRO Industries Corp.
(TSX-V:FGR) (“FENGRO” or “the Company”) is pleased to announce a non-
brokered private placement to raise up to C$1, 610,000 (the “Placement”) through
the issuance of common shares of the Company (“Shares”) at a price of C$0. 14
per Share (the “Issue Price”).
brokered private placement to raise up to C$1.0 million (the “Placement”) throught
The Placement will result in the issuance of up to 11,500,000 common shares of the
Company. Proceeds will be utilized for corporate costs, working capital and business
development.
The Company expects to close the Placement on or around August 1, 2018, subject
to TSXV approval. Shares sold pursuant to the Placement will be subject to a four
month resale hold under applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to
sell any of the securities in the United States. The securities have not been and will
not be registered under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”) or any state securities laws and may not be offered or sold
within the United States or to U.S. persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption from such
registration is available.
Update on Activities
The Company has received its Registro de Estabelecimento permit from the Ministry
of Agriculture (“MAPA”) for the production of fertilizers at the Santiago Project. The
permit is issued on a renewable, five year term. The Company is continuing to work
with MAPA for the registration of its various products, as w ell as the relevant
agencies for its permanent mining licence.
FENGRO produces phosphate rock from its Direct Application Natural Fertilizer
(“DANF”) Santiago Project in Tocantins State, Brazil (“Santiago Project”) and has
assembled a first class management team and board, giving it a significant project
development and operational capacity in Brazil , and continues to actively pursue
opportunities for increasing shareholder value through organic growth and corporate
transactions. Having restructured its business and re-started extraction and sales of
its DANF products in 2017, the Company has delivered in line with its budget for the
Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6
Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com
first six months of 2018, although the recent national strike by truck drivers in Brazil
has disrupted the normal agricultural purchasing cycle and will have some impact on
deliveries for July. The Company will update shareholders as appropriate.
On behalf of Fengro Industries Corp.
Giles Baynham , Chief Executive Officer and Director
For more information contact:
Email: [email protected]
+1 (604) 764 6126
FORWARD LOOKING STATEMENTS
Certain information contained in this press release constitutes “forward-looking information”, within the meaning
of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward -
looking terminology such as “aims”, “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,
“target”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of
such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this
press release may include statements regarding the future operating or financial performance of Fengro which
involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and
outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such
statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.
Among those factors which could cause actual results to differ materially are the following: market conditions
and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR
at www.sedar.com. The forward-looking statements included in this press release are made as of the date of
this press release and Fengro disclaims any intention or obligation to update or r evise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as expressly required by
applicable securities legislation.
Disclosure - The Company’s decision to produce DANF, its DANF production targets and cash flow projections
were not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Without
a technical report demonstrating economic and technical viability, there is uncertainty as to whether the Company
will be able to economically produce DANF in the long run and as to whether the Company will be confronted
with any unforeseen technical impediments. The Company has now completed a preliminary economic
assessment.
Disclosure - Note that the DANF PEA is preliminary in nature as it includes inferred mineral resources that are
considered too speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves. Mineral resources that are not mi neral reserves do not have
demonstrated economic viability, and as such there is no certainty that the preliminary assessment and
economics will be realized.
Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the
policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this
press release.